OpenAI Files for IPO Just Days After Anthropic — The AI Arms Race Is Now a Wall Street Arms Race

OpenAI filed a confidential S-1 registration with the SEC on Monday, seeking an IPO just days after rival Anthropic, with Goldman Sachs and Morgan Stanley leading the deal and no listing date set. The company, valued at $852 billion, expects to burn $85 billion in 2028 and won’t achieve positive cash flow until 2030, despite having over 900 million weekly ChatGPT users, while also facing questions about revenue growth and valuation benchmarks in the AI sector." "article": "OpenAI submitted a confidential S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) on Monday, marking its entry into the public markets just a week after rival AI firm Anthropic filed its own IPO prospectus. The move accelerates a wave of high-profile AI listings, with SpaceX also preparing to debut on the Nasdaq on June 12. Goldman Sachs and Morgan Stanley are leading OpenAI’s deal, though no listing date or share price has been announced. Valued at $852 billion following a $122 billion funding round in March, OpenAI’s filing comes amid fierce competition with Anthropic, which holds a $965 billion valuation. The first company to go public will set the valuation benchmark for the entire AI sector, influencing how subsequent firms are priced. Analysts at PitchBook have already flagged OpenAI as overvalued relative to its financial fundamentals, raising questions about whether market expectations align with performance. Despite its massive user base—ChatGPT now has over 900 million weekly active users—the company faces significant financial challenges. OpenAI expects to lose $85 billion in 2028, even after doubling revenue, and does not project positive cash flow until 2030. Internal reports from April indicated missed revenue targets in early 2026 and a shortfall in reaching its goal of one billion weekly active users by the end of 2025. Chief Financial Officer Sarah Friar has privately expressed concerns about whether revenue growth can sustain the company’s infrastructure costs. The IPO filing follows OpenAI’s resolution of legal disputes, including a dismissed lawsuit by co-founder Elon Musk in May, where a federal jury ruled there was no binding founding agreement. Microsoft retains a 27% stake in OpenAI Group PBC, valued at $135 billion, acquired during the company’s restructuring in October 2025. The gap between OpenAI’s and Anthropic’s valuations—$113 billion lower—highlights market uncertainty about which firm will command stronger investor confidence. OpenAI’s blog post acknowledged the tension between its private-company advantages and the urgency of its IPO timeline, stating that certain strategic moves may be easier to execute as a private entity. The company’s decision to file just days after Anthropic reflects both competitive pressure and a race to shape the AI sector’s financial narrative. A successful IPO could validate the AI investment boom, while a weaker debut might dampen enthusiasm across industries betting on AI-driven transformation.